NIFTY ON TRACK TO ACHIEVE 9950-10000 TARGET; TRAIL STOP-LOSS TO 9770

NIFTY ON TRACK TO ACHIEVE 9950-10000 TARGET; TRAIL STOP-LOSS TO 9770

WORLD MARKETS                             

US indices gained 0.1%-0.2% with the Dow notching a fresh record close as retail stocks, led by Target, surged.

Shares of Target climbed nearly 5% after the company said it expects "modest increase" in second-quarter comparable-store sales. Target added it expects second-quarter earnings to come in above the high end of the forecast.

Yellen, in her second day of testimony, said that achieving President Donald Trump's 3% growth target would be "challenging" due to reasons related to productivity growth.

The U.S. producer price index rose 0.1% in June. Weekly jobless claims came in just above expectations at 247,000.

Oil prices rose more than a percent after China customs data showed strong demand.

Bond yields rose with the German Bund yield at 0.6% following news on of the European Central Bank possibly adjusting its policy outlook. US 10-year yield held steady at 2.35%.

In Europe, FTSE ended a tad lower while other markets gained 0.1%-0.9%.

AT HOME

Benchmark indices soared about three-fourth of a percent to close at fresh record high. Sensex finished at 32037, up 233 points while Nifty added 76 points to settle at 9892. BSE mid-cap and small-cap indices gained 0.5% and 0.4% respectively. Except a 0.3% lower Oil & Gas index, all the BSE sectoral indices ended in green with FMCG and Capital Goods indices leading the tally, up 1.6% and 1% respectively.

FIIs net sold stocks and index futures worth Rs 59 cr and 620 cr respectively but net bought stock futures worth Rs 1192 cr. DIIs were net buyers to the tune of Rs 279 cr.

Rupee appreciated 9 paise to end at 64.45/$.

TCS reported lower-than-expected profit and operational numbers, though revenue met expectations. Net profit fell 10.1% q-o-q to Rs 5945 cr. Revenue in rupee terms fell 0.2% to Rs 29584 cr while in Dollar terms rose 3.1% to $4591 mn. Constant currency revenue for the quarter grew by 2%, with volume growth of 3.5%. Operating margin contracted sharply by 230 bps to 23.4%.

OUTLOOK

Today morning, except a modestly lower Shanghai, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 20 points higher start for our market.

At the risk of repeating, we have been working with target area of 9950-10000 ever since Nifty took out 9710 hurdle.

The benchmark touched a high of 9897 before closing at 9892 yesterday and is on track to achieve above mentioned target.

Immediate support on the hourly chart has moved up to 9770, with the stop-loss of which trading longs should be held on to.

June WPI will be released today and is expected to show a reading of 1.28%, down from 2.55% in May.

Infosys will report its quarterly results today.